ANNUAL REPORT AND STATEMENT OF ACCOUNTS
Year ended 31 December 2023
Incorporating Notice of the Annual General Meeting on 17 December 2024
NOTICE OF ANNUAL GENERAL MEETING
The Annual General Meeting of Essex County Cricket Club Limited will be held in The Doug Insole Pavilion, at The Cloud County Ground, New Writtle Street, Chelmsford on Tuesday 17 December 2024 at 7pm. Information on how to attend as a Member will be emailed to attendees directly.
AGENDA
1. Welcome and apologies for absence
2. Minutes of the Annual General Meeting held on 12 December 2023
3. Chair’s report
4. Treasurer’s report including; Presentation and adoption of Annual Report and Statement of Accounts
5. In person Constitutional Change role
6. Appointment of the Board Directors
7. Any other business
Please note it will be necessary to show your 2024 Membership card to gain admission to the Annual General Meeting on Tuesday 17 December 2024.
Company Secretary
11 December 2024
DAN FEIST
THE CLUB OFFICERS AND COMMITTEE
Chair: A Mohindru KC
Deputy Chair: V A S Keil
Treasurer: N J Faraday
General Manager: D Feist (from 8 July 2024)
President: K W R Fletcher OBE
Chief Executive: J P Stephenson (until 8 July 2024)
ESSEX COUNTY CRICKET CLUB BOARD (THE COMMITTEE OF MANAGEMENT):
A Mohindru KC (Chair)
V A S Keil (Deputy Chair)
S D Cooper
V G Ford
J E R Gallian
S O’Brien CBE
Q Porter (until 29 September 2024)
P Somaiya
C J Townsend
* N J Faraday
+ B W Elliott
+ D Feist
+ K W R Fletcher OBE
+ R A Lewis
+ J P Stephenson (until 8 July 2024)
Auditors: RSM UK Audit LLP, Chartered Accountants, Third Floor, Priory Place, New London Road, Chelmsford, Essex, CM2 0PP
Club Captain: T Westley
BOARD:
Retire 2024 Retire 2025 Retire 2026
S D Cooper S O’Brien CBE
C J Townsend A Mohindru KC
V G Ford
COMMITTEE AND GROUPS:
V A S Keil
J E R Gallian
P Somaiya Cricket Committee
J E R Gallian (Chair)
K W R Fletcher OBE
G A Gooch OBE (until 24 June 2024)
A McGrath (until 31 October 2024)
J P Stephenson (until 8 July 2024)
T Westley
+ N J Faraday
+ D Feist
Audit Committee
N J Faraday (Chair)
S D Cooper
S O’Brien CBE
+ B W Elliott + J P Stephenson (until 8 July 2024)
Remuneration & Nominations Committee
N J Faraday (Chair)
V A S Keil
A Mohindru KC
S O’Brien CBE
Members’ Committee Investment & Estates
V A S Keil (Chair)
M Dillane
D Feist (from 8 July 2024)
C Grant
E C Rowley
P Somaiya
J P Stephenson (until 8 July 2024)
A D Yetts
N J Faraday (Co-Chair)
C J Townsend (Co-Chair)
S D Cooper V Ford
Q Porter (until 29 September 2024)
Cost Committee Members
N J Faraday (Chair)
B W Elliott
P Somaiya
The President is an ex-officio member of the Board, and the Chair, Deputy Chair, and Treasurer are ex-officio members of all Committees and Groups where they are not formally appointed members.
* Indicates a co-opted member of the Board. + Indicates those attending Committees who have no voting rights.
GENERAL MANAGER AND CHAIR REPORT
The 2023 season saw the retirement of one of England Cricket’s all-time greats, as Sir Alastair Cook played his final innings. The game, the country, the county, and the club have so much to thank Sir Alastair for and it was fitting to mark the occasion by re-naming the River End of the ground after Sir Alastair, whilst re-naming the Hayes Close End after Graham Gooch.
The 2023 season again saw Essex competing hard both on and off the field to work towards its vision to be the number one cricket region that inspires everyone to Fly Like An Eagle.
On the field, the Men’s team once again pushed Surrey all the way to the County Championship title, whilst in the T20 competition, a collective squad effort inspired by a year to remember for Daniel Sams, saw Essex just fall short of repeating the 2019 success. The 50 over competition again provided an opportunity for the next generation of home-grown Eagles as Jamal Richards, Noah Thain, Luc Benkenstein and Charlie Allison all delivered strong performances.
There was success across the Club as the Essex Women’s team won the London Championship, and the U18 Girls reached the National T20 finals; the first county to reach both the T20 and 50 over finals weekend. Furthermore, our Ability team reached the national final and the Seniors had another successful season with the over 50’s side continuing to be a leading force in the country.
Essex would like to thank Dan Lawrence for his service to the club following his decision to join Surrey in 2024. Dan came through the pathway at Essex, and has a strong connection to the regional game due to his close links with Chingford Cricket Club. We would also like record our thanks to Will Buttleman, Aron Nijjar, Eshun Kalley and Josh Rymell - all players who grew up through the Essex pathway but left the club at the end of their contracts. Thanks also to our overseas signings in 2023 - Doug Bracewell, Daniel Sams, Beau Webster and Unmesh Yadav.
The year saw several players achieve international recognition with Jamal Richards, Noah Thain and Charlie Allison all selected for the U19’s, Sam Cook and Matt Critchley the England Lions, and Dan Lawrence, the full England Side. We also saw Ronnie Jackson selected for the Disability Ashes, Mel Hussain and Marcus Young the England Over 60’s, and Catherine Dalton selected to be the first Women coach in the PSL.
2023 witnessed another successful season around the ground, the highlight being three sold out One Day Internationals between Ireland and Bangladesh. The games were not only a brilliant occasion but saw the Club win an ECB Business of Cricket Award (BOCA) for Community Engagement. This was not the only international Cricket to be played at the ground as England Women took on Sri Lanka. Both these games allowed our new Faith and Reflection room to be used.
The room is based in the indoor centre and over 3,000 people used it during the season. At the end of the 2023 season we said goodbye to Tony Choat, the County’s First team scorer for over 25 years, who finally scored his last game. We offer huge thanks to Tony for his service to the club.
2023 brought about a number of changes in the governance of the club as Anu Mohindru took over as Chair with Victoria Kiel elected as Vice Chair. Keith Fletcher took on the role of President; Keith is such a loyal fan, player and officer of the club and there is no one better to guide us as we approach our 150 year celebration. Keith continues his role on the Cricket Committee, where we welcomed Jason Gallian as Chair. Jason’s deep knowledge and experience across all levels of the game will support the club as we move forward. The Essex Cricket Foundation also installed a new Chair as Myles Churchill took up the role. Rachel Lewis carries on in her position as Chair of Essex Cricket in the Community.
A Mohindru Chair
D Feist General Manager
TREASURER’S REPORT
2023 has been another challenging year for the Club financially, both in terms of ordinary trading and also exceptional costs related to the investigation in to incidents of historic racism. Having now concluded the latter the board and the executive are working towards achieving long term financial stability with a two year transformation plan.
2023 RESULTS
The loss before tax for the year was £751,382. This included exceptional costs of £260,578 related to the investigation in to incidents of historic racism. The loss also includes an exceptional income item of £793,726, which is a business interruption insurance claim related to Covid.
At the year end cash in hand and investments totalled £2,019,697, which is a decline of £475,148 on the prior year as cash was spent funding losses in the year.
The Club has faced revenue challenges with sponsorship and corporate hospitality still below the pre-Covid level even on a cash basis (combined the 2023 revenue is £215,859 below the 2019 revenue on a like-for-like basis). This is partly due to the economy and changing consumer habits postCovid but also a symptom of the tired facilities we have at Chelmsford.
The Club remains dependent on its share of broadcast revenue distributed by the ECB. This accounts for 40.8% of total revenue in the year (45.1% if the business interruption insurance claim is disregarded). Revenue overall did increase by £296,812 driven principally by ticket revenue from strong attendances in the Ireland v Bangledesh matches, together with increased competition prize money and the business interruption insurance claim.
At the same time the operating cost base increased materially by £864,045 driven principally by employment costs, in particular cricket related employment costs.
TWO YEAR PLAN
The board has implemented a plan to return the Club to positive EBITDA in 2025. A number of initiatives were executed in 2023 that will have a financial benefit in 2024 and the board continues to take action and work towards achieving the 2025 aim.
GOING CONCERN
The 2022 accounts included a material uncertainty regarding the going concern basis for two reasons. First the investigation into incidents of historic racism was ongoing and there were at the time potentially unquantifiable liabilities that could have resulted from the investigation and, second, the forecast losses for 2024 (at the time of signing the financial statements in late 2023) required the sale of some of the Club’s investments to fund working capital.
The 2023 accounts are completed on a going concern basis but again with a material uncertainty. Whilst the racism investigations have concluded the board consider there to be no further liabilities arising beyond those included within the 2023 accounts and, at the year end, the vast majority of the historic liabilities have been settled. The Club has made significant progress on returning the Club to financial sustainability through the two year plan but there remains some execution risk around delivering the 2025 budget with limited headroom as the Club’s cash reserves and investments have depleted to fund years of historic losses and legal fees relating to the investigations.
N J Faraday Treasurer
STATEMENT OF THE COMMITTEE OF MANAGEMENT’S RESPONSIBILITIES
The Committee of Management is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
The Co-operative and Community Benefit Societies Act 2014 requires the Committee of Management to prepare financial statements for each financial year. Under that Act, the Committee of Management have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), and must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Society and of the profit or loss of the Society for that period.
In preparing these financial statements, the Committee of Management is required to:
a. Select suitable accounting policies and then apply them consistently;
b. Make judgements and accounting estimates that are reasonable and prudent;
c. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Society will continue in business.
The Committee of Management is responsible for keeping proper accounting records that are sufficient to show and explain the Society’s transactions and disclose with reasonable accuracy at any time the financial position of the Society and enable it to ensure that the financial statements comply with the Cooperative and Community Benefit Societies Act 2014. It is also responsible for safeguarding the assets of the Society and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ESSEX COUNTY CRICKET CLUB LIMITED
OPINION
We have audited the financial statements of Essex County Cricket Club Limited (the ‘Society’) for the year ended 31 December 2023 which comprise the income and expenditure account, the balance sheet, the statement of changes in equity, the statement of cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
• give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the Society’s affairs as at 31 December 2023 and of its income and expenditure for the year then ended; and
• comply with the requirements of the Co-operative and Community Benefit Societies Act 2014.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Society in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
We draw attention to the accounting policies note 1.3 which indicates the uncertainties relating to the Society’s consideration of going concern. Whilst the Committee of Management have completed a going concern review and have concluded that there is a reasonable expectation that the Society has adequate resources to continue in operational existence for the foreseeable future this is reliant on the continued sales of the Society's investment portfolio along with specific revenue enhancements which are subject to execution risk, and also subject to risks in relation to recent and future changes to employment tax legislation. Given the limited headroom on cash reserves and investments, these matters indicate that a material uncertainty exists that may cast significant doubt on the Society's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the Committee of Management’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the Committee of Management with respect to going concern are described in the relevant sections of this report.
OTHER INFORMATION
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The committee of management is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
OPINION ON OTHER MATTERS UNDER THE CO-OPERATIVE AND COMMUNITY BENEFIT SOCIETIES ACT 2014
In our opinion, the following continued to apply throughout the year of account:
• the reason given by the Society’s Committee of Management in respect of a previous year of account for all subsidiaries in note 9(a) to the financial statements to not be dealt with in the financial statements (having been approved by the FCA under section 99, subsection (3)); and
• the grounds given by the Society’s Committee of Management for that reason.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Co-operative and Community Benefit Societies Act 2014 requires us to report to you if, in our opinion:
• proper books of account have not been kept by the Society in accordance with section 75; or
• a satisfactory system of control over transactions has not been maintained by the Society in accordance with section 75; or
• the income and expenditure account, and the balance sheet are not in agreement with the books of account of the Society; or
• we have not obtained all the information and explanations which, to the best of our knowledge and belief, we consider necessary for the purposes of our audit.
RESPONSIBILITIES OF THE COMMITTEE OF MANAGEMENT
As explained more fully in the Statement of the Committee of Management’s Responsibilities set out on page 6, the committee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the committee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the committee is responsible for assessing the Society’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the committee either intend to liquidate the Society or to cease operations, or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
THE EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the society operates in and how the society is complying with the legal and regulatory framework;
• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
• discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Co-operative and Community Benefit Societies Act 2014 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and evaluating advice received from external tax advisors.
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety and cricket ground crowd control. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations as well as completing searches for any reportable incidents in the public domain.
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
USE OF OUR REPORT
This report is made solely to the Society’s members, as a body, in accordance with the provisions of section 87 of the Co-operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the Society’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept responsibility to anyone other than the Society and the Society’s members as a body, for our audit work, for this report or for the opinion we have formed.
RSM UK Audit LLP, Statutory Auditor
Chartered Accountants
Third Floor
Priory Place
New London Road
Chelmsford
CM2 0PP
12 December 2024
ESSEX COUNTY CRICKET CLUB LIMITED
INCOME AND EXPENDITURE ACCOUNT
The income and expenditure account has been prepared on the basis that all operations are continuing.
ESSEX COUNTY CRICKET CLUB LIMITED BALANCE SHEET
The Financial Statements on pages 10 to 24 were approved by the General Committee and authorised for issue on 11 December 2024 and are signed on it’s behalf by:
A Mohindru
N J Faraday Chair Treasurer
ESSEX COUNTY CRICKET CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2023
ESSEX COUNTY CRICKET CLUB LIMITED STATEMENT OF CASH FLOWS
ESSEX COUNTY CRICKET CLUB LIMITED NOTES TO THE ACCOUNTS
for the year ended 31 December 2023
1 ACCOUNTING POLICIES
1.1 GENERAL INFORMATION
Essex County Cricket Club Limited ("the Company") is a society registered under the Co-operative and Community Benefit Societies Act 2014. The Company is domiciled and registered in England.
The address of the Company's registered office and principal place of business is The Cloudfm County Ground, New Writtle Street, Chelmsford, Essex CM2 0PG.
The Company's principal activity is the operation of a professional cricket club and is one of the eighteen first class counties that compete in league and cup competitions in England run by the England and Wales Cricket Board ("The ECB").
1.2 BASIS OF PREPARATION
These financial statements have been prepared in accordance with FRS 102 ' The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the requirements of the Co-operative and Community Benefit Societies Act 2014. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for listed investments.
The financial statements are presented in sterling (£), which is also the functional currency of the Company.
The financial statements present information about the Society as an individual entity and not about its group. The Society has previously obtained permission under section 99, subsection (3) of the Co-operative and Community Benefit Societies Act 2014 not to prepare group accounts on the basis that the subsidiaries are dormant and not material for the purpose of giving a true and fair view. The Committee of Management believe that it is entitled to continue to apply that exemption in the current year.
1.3 GOING CONCERN
These financial statements have been prepared on a going concern basis, which assumes that the company will be able to continue to trade and meet its debts as they fall due for the foreseeable future, as a minimum for a period of at least twelve months from the date of approval of these financial statements.
At the balance sheet date the company had net current assets of £88,687 and was holding cash and investments of £2,019,697. The Company has sold £1.05m of its investment portfolio since the year end and utilised elements of year end cash reserves to support working capital covering 2024 losses and investigation legal fees.
The Company has prepared profit and cash flow forecasts covering a period of more than 12 months from the date of approval of these financial statements. In producing these forecasts, management have assumed that monies will be received from the ECB in line with the ECB County Partnership Agreement.
After reviewing the Company's forecasts and projections, the Committee of Management have a reasonable expectation that the Company can return to financial sustainability through the two year plan that has been implemented. However the Committee of Management considers that plan to have some execution risk around specific revenue enhancements and concerns as to the cost implications of recent changes to National Insurance and potential future such changes, with limited headroom on cash reserves and investments. The Company continues to adopt the going concern basis in preparing its financial statements, but the combined risks set out above indicate that a material uncertainty exists that may cause doubt over the ability of the company to continue as a going concern.
1.4 TANGIBLE FIXED ASSETS
Tangible fixed assets are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost of each asset to its estimated residual value on a straight line basis over its expected useful life, as follows:
Freehold properties
2% - 10% on cost
Other equipment 10% - 25% of additions at cost (based on estimated useful life of the asset)
Motor vehicles 25% on net book value
No depreciation was provided on freehold buildings prior to 30 September 1980.
1.5 IMPAIRMENT OF FIXED ASSETS
An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Company estimates the recoverable amount of the asset.
Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in profit and loss. On reversal of an impairment loss, the depreciation is adjusted to allocate the assets revised carrying amount over its remaining useful life.
1.6 GRANTS
Grants received towards the construction costs of the Cricket School have been treated as deferred income. This is credited to the income and expenditure account on a straight line basis over 50 years, in line with the depreciation policy for this asset Grants received from the ECB towards capital investment or other expenses not yet incurred are credited to a deferred income account and released to profit or loss in line with the depreciation policy relating to the assets purchased, as disclosed under note 1.13. Amounts released to the profit or loss are disclosed in notes 4 and 12 to these accounts. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
1.7
SUBSCRIPTIONS
Subscriptions are credited in the year to which they apply. Life subscriptions are credited to deferred income and released to profit and loss account in future years.
1.8
INCOME
Income is stated excluding value added tax as appropriate. Income from marketing, matches, cricket operations and cricket centre are recognised when the substantial risks and rewards have been transferred.
1.9 BARTER TRANSACTIONS
Turnover and costs in respect of barter transactions are recognised only where there is persuasive evidence of the value at which, if it had not been exchanged, the items would have been sold for cash in a similar situation.
1.10 TAXATION
The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.
Current tax is based on the taxable profit for the year. Taxable profit differs from the income and expenditure account because it excludes items of income or expense that are taxable or deductible in other periods. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on the tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and the income and expenditure account that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.
Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.11 RETIREMENT BENEFITS
Defined contribution plans
For defined contribution schemes the amount charged to income and expenditure is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
1.12 INVESTMENTS
Investments held as fixed assets are classified as financial instruments and accounted for in accordance with the accounting policy at fair value through profit and loss as set out in accounting policy 1.17.
1.13 ENGLAND AND WALES CRICKET BOARD (ECB)
The Club accounts for income from the ECB on an accruals basis. Capital grants received are credited to a deferred income account and released to profit or loss in line with the depreciation policy relating to the assets purchased, as set out in accounting policy 1.6.
1.14 DONATIONS AND LEGACIES
Donations and legacies are accounted for on a receivable basis.
1.15 OPERATING LEASES
Rentals payable under operating leases are charged to the income and expenditure account on a straight line basis over the period of the lease.
1.16 STOCK
Stock is valued at the lower of cost and net realisable value. Net realisable value is based upon estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items.
1.17 FINANCIAL INSTRUMENTS
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 ' Other Financial Instruments Issues' of FRS 102, in full, to all of its financial instruments.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument, and are offset only when the Company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets
Trade and other debtors
Trade and other debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.
A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit and loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised in profit or loss.
Listed investments
Listed investments are equity investments over which the Company has no significant influence, joint control or control and are initially measured at transaction price. Transaction price includes transaction costs, except where trade investments are measured at fair value through profit or loss when transaction costs are expenses to profit or loss as incurred.
The fair value of listed investments quoted on a recognised stock exchange is the quoted bid price.
Financial liabilities and equity
Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Trade and other creditors
Trade and other creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.
Equity instruments
Financial instruments classified as equity instruments are recorded at the fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments.
1.18 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT
In the application of the Society's accounting policies, the Society is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the peiord of the revision and future periods where the revision affects both the current and future periods.
The Committee of Management do not deem there to be any significant accounting estimates and judgements in the preparation of these financial statements.
2 TURNOVER AND EXPENDITURE
All turnover was generated within the United Kingdom. An analysis of the Company's turnover by class of business is as follows:
3 INTEREST RECEIVABLE AND SIMILAR INCOME
4 LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
Loss on ordinary activities before taxation is stated after charging / (crediting) the following:
Apart from remuneration paid to Executives no member of the Committee received any remuneration or expenses for the performance of their Committee duties.
5 STAFF COSTS
Average number of people employed by the club, both full and part time, was as follows:
6 EXCEPTIONAL ITEMS
Exceptional items relates to the legal and other related costs of the racism allegations brought against the Club. The expenditure includes expenditure incurred during the year together with a provision for known costs relating to these matters which were confirmed subsequent to the year end.
7 TAXATION
2023
Current Tax:
UK corporation tax on loss for the period -Adjustments in respect of previous periods - -
Total current tax - -
Deferred Tax:
Origination and reversal of
Total deferred tax (76,959) (137,984)
Factors affecting tax charge for the period
The tax assessed for the period is lower than the standard rate of corporation tax in the UK (23.5%).
The differences are explained below:
Loss on ordinary activities before tax
Loss on ordinary activities multiplied by the standard rate of corporation tax in the UK of 23.5% (2022: 19%) (176,729) (98,224)
Effects of:
A deferred tax asset of £159,674 (2022: £Nil) has not been recognised in respect of tax losses due to the uncertainty as to the timing of when the benefit of the asset will be realised. Some element of the deferred tax asset in respect of losses has been recognised to the extent that the losses can be offset against other deferred tax liabilities, as set out in note 16.
8 FIXED ASSETS
Capitalised ground development costs were £78,520 in 2023, (2022: £11,371) and costs disposed of were £Nil (2022: £Nil) making a total of £89,891 (2022: £11,371) which is included in Stadium costs. These capitalised costs are not being depreciated as they relate to assets not currently in use.
Included in Stadium / Cricket School is freehold land of £355,841 (2022: £355,841) which is not depreciated.
9 INVESTMENTS
At 31 December 2023 the company held a 100% interest in the following subsidiaries, all incorporated in England and non trading:
* Holds investments on behalf of Essex County Cricket Club Limited
b) LISTED INVESTMENTS
The fair values of the listed equity investments are based on quoted market prices for the equity shares using the current bid price.
If listed investments were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
12 CREDITORS DUE WITHIN ONE YEAR
13 DEFERRED INCOME
14 CREDITORS DUE AFTER MORE THAN ONE YEAR
15 FINANCIAL INSTRUMENTS
Financial assets measured at fair value through profit or loss (note 9)
16 PROVISIONS FOR LIABILITIES AND CHARGES
Provision for
tax has been made as follows:
A deferred tax asset in respect of tax losses has not been recognised as detailed in note 7.
17 SHARE CAPITAL
Shares
18 ACCUMULATED FUND
The accumulated fund of the company represents the balance of accumulated profits reported through the income and expenditure account.
19 PENSIONS
Included in staff costs for the period is £339,624 (2022: £308,894) in respect of the Club's contributions to staff and players group personal pension schemes. Amounts accrued for at year end were £51,988 (2022: £45,097).
20 RELATED PARTY TRANSACTIONS
The Club has a close association with Essex Cricket in the Community (the board), the organisation responsible for the development and promotion of recreational cricket in the county.
The Club underwrites the activities of the Board and provides accommodation, management, technical, secretarial and overhead support at a subsidised rate which varies from year to year. This amount depends on the level of sponsorship, fundraising or other financial support the Club or the Board are able to generate for the benefit of the Board.
The amount owed by the Board at the year end was £24,971 (2022: £2,863) which is included in other debtors.
Essex Cricket Foundation (ECF) is the official charity of Essex Cricket. Two representatives from the Club are Trustees of the ECF.
The Club received a donation of £43,000 (2022: £42,000) from ECF for sponsorship of the Academy. The Club also paid for various items during the year on behalf of ECF that will be reimbursed by ECF. The balance owing to ECF at the year end was £5,638 which is included in other creditors (2022: amount owed by ECF £53,073 which is included in other debtors).
The total remuneration of the key management personnel of the club was £678,140 (2022: £641,345).
21 CAPITAL COMMITMENTS
Capital commitments contracted for but not provided in the financial statements amounted to £444,750 (2022: £180,000) less grant funding of £196,000 (2022: £150,000).
22 CONTROLLING PARTY
There is not a controlling party for the club.
23 EVENTS AFTER THE REPORTING DATE
On 1 July 2024 the Company incorporated a wholly owned subsidiary, We Are Essex Cricket Limited, in relation to the launch of the Essex Cricket Tier One Professional Women's Team.
